Question

C3-1 Part 1 Required 1. Analyze the effect of the January transactions (shown below) on the accounting equation, and indicate the account, amount, and direction of the effect of each transaction. (Enter any decreases to account balances with a minus sign.) a. Received $50,000 cash from customers for subscriptions that had already been earned in 2014. b. Received $170,000 cash from Electronic Arts, Inc. for service revenue earned in January. C. Purchased 10 new computer servers for $33,500; paid $10,000 cash and signed a three-year note for the remainder owed. d. Paid $10,000 for an Internet advertisement run on Yahoo! in January e. Sold 15,000 monthly subscriptions at $15 each for services provided during January. Half was collected in cash and half was sold on account f. Received an electric and gas utility bill for $5,350 for January utility services. The bill will be paid in February g. Paid S378,000 in wages to employees for work done in January. h. Purchased $3,000 of supplies on account. Paid $3,000 cash to the supplier in (h) Assets Liabilities Stockholders' Equity a. b. с. d. h.

Answer 1